Commuting, Migration and Local Employment Elasticities

Ferdinando Monte, Stephen Redding and Esteban Rossi-Hansberg

No 21706, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: To understand the elasticity of employment to local labor demand shocks, we develop a quantitative general equilibrium model that incorporates spatial linkages in goods markets (trade) and factor markets (commuting and migration). We show that local employment elasticities differ substantially across U.S. counties and commuting zones in ways that are not well explained by standard empirical controls but are captured by commuting measures. We provide independent evidence for these predictions from million dollar plants and find that empirically-observed reductions in commuting costs generate welfare gains of around 3.3 percent and employment reallocations from -20 to 30 percent.

JEL-codes: F16 J6 J61 R0 (search for similar items in EconPapers)
Date: 2015-11
New Economics Papers: this item is included in nep-geo, nep-mig, nep-tre and nep-ure
Note: ITI LS
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (53)

Published as Ferdinando Monte & Stephen J. Redding & Esteban Rossi-Hansberg, 2018. "Commuting, Migration, and Local Employment Elasticities," American Economic Review, vol 108(12), pages 3855-3890.

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Related works:
Journal Article: Commuting, Migration, and Local Employment Elasticities (2018)
Working Paper: Commuting, Migration and Local Employment Elasticities (2017)
Working Paper: Commuting, Migration and Local Employment Elasticities (2015)
Working Paper: Commuting, Migration and Local Employment Elasticities (2015)
Working Paper: Commuting, migration and local employment elasticities (2015)
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